San Jose-based Energous (NASDAQ:WATT) Corp, a company specializing in wireless charging technology, has received a notice from the Nasdaq Stock Market indicating non-compliance with its continued listing requirements. Specifically, the notice, received on Wednesday, December 4, 2024, points to Energous' failure to meet the minimum stockholders' equity threshold.
The Nasdaq Listing Rule 5550(b)(1), which requires companies to maintain a minimum stockholders' equity of $2.5 million, was not met by Energous, as their equity stood at $434,000 at the end of the third quarter on September 30, 2024. According to InvestingPro data, the company's financial health score is rated as WEAK, with concerning metrics including a current ratio of 0.81, indicating short-term obligations exceed liquid assets. The company also did not satisfy alternative compliance standards related to the market value of listed securities or net income from continuing operations.
Energous has until January 20, 2025, to submit a plan to Nasdaq detailing how it intends to regain compliance with the stockholders' equity requirement. If Nasdaq accepts the plan, Energous may be granted up to 180 days from the notice date to demonstrate compliance.
This development follows a previous notice from August 29, 2024, in which Energous was warned about its non-compliance with Nasdaq's minimum bid price requirement. The company has until February 25, 2025, to address this issue, and it is considering measures, including a potential reverse stock split, to meet the requirement.
Despite these notices, Energous' common stock continues to be listed and traded on The Nasdaq Capital Market under the ticker symbol "WATT." However, failure to regain compliance with Nasdaq's listing rules could lead to the delisting of Energous shares. InvestingPro data reveals the stock has declined 76.5% year-to-date and is currently trading near its 52-week low of $0.42, with a market capitalization of just $3.69 million.
Get access to 20+ additional key insights and detailed analysis about WATT through InvestingPro's comprehensive research reports, available for over 1,400 US stocks. The company is currently evaluating options to address the compliance shortfall and intends to submit a timely plan to Nasdaq.
The information for this article is based on a press release statement from Energous Corporation.
In other recent news, Energous Corporation has announced significant advancements in its operations. The company has initiated a project with a Fortune 10 multinational retailer to modernize infrastructure across its retail locations.
Energous is set to ship more than 1,500 of its 2W PowerBridge transmitter systems by the end of the year, marking a considerable step in the deployment of wireless power networks. Analysts from InvestingPro project substantial sales growth for the company this year.
Energous has also appointed Mallorie Burak as the permanent CEO, while she continues to fulfill her CFO duties. The company's wireless power technology aims to improve supply chain operations for approximately 140 U.S. retail stores and multiple grocery distribution centers, with plans to expand to around 4,700 retail locations over the next three to five years.
Despite facing a potential delisting risk from Nasdaq, Energous has secured FCC (BME:FCC) certification for its 2W PowerBridge transmitter system and formed strategic partnerships with Annukin, Ecobyte, and Peak Technologies. On the analyst front, Roth/MKM maintained its Buy rating on Energous, albeit with a reduced price target, and Ladenburg Thalmann downgraded Energous from Buy to Neutral.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.